The importance of the Bali World Trade Organisation (WTO) ministerial conference in the economic development of African countries: A case study of Zimbabwe

Abstract

World Trade Organisation Ministerial conferences provide a platform for member states to discuss issues that affect international trade. Since the inception of WTO up to date nine ministerial conferences have been conducted. Out of eight of these Ministerial conferences the Bali Ministerial conference which was held in Indonesia from the 3rd to the 6th of December 2013, has been hailed as the most successful initiative due to the ability of member states to reach a consensus during the negotiations. The Bali initiative covers four key issues that affect international trade mainly Trade facilitation, Technology, Agriculture and Development issues. These areas also known as the Bali issues have been applauded by most scholars as key to economic development and smooth flow of trade. Scholars such as Bendini (2013) predicted an estimate of four trillion US Dollars’ worth of export gains if initiatives like TF would be implemented and reduction of cost of trade in developing countries by 13 to 15 percent. However there has been another crop of analysts who argue that the Bali package serves more the interest of the developed countries as compared to the Developing and the least developed countries. According to these scholars Bali initiatives such as TF will strengthen the economic hegemony of the rich countries as it will further open markets for their products whilst enlarging the begging bowels for the least developed countries. These arguments have been presented in detail in chapter two of this research. Given this background this dissertation sought to examine the relevance of the Bali package to the economic development of African counties with special reference to Zimbabwe. The study also aimed at scrutinising the implications for ratification and non-ratification of the deal to the least developed countries like Zimbabwe. A cost and benefit analysis that is associated with the implementation of the deal was done as well as identification of various stakeholders that are affected by the package. Through the use of both qualitative and quantitative methods of data collection in-depth information about the importance of the Bali package on the economic development of Zimbabwe was collected. The researcher employed various research methods that entail key informant interviews with relevant ministries and organisations, documentary search, e-mail and self- administered interviews to increase validity of the findings. These findings would be presented in detail in chapter four. As it is going to be noted in the presentation below, most respondents identified various defects that are associated with the implementation of the Bali package. However, there was a general consensus from the findings that emerged that it is impossible for Developing countries such as Zimbabwe to insulate their economies from the effects of the Bali package. The researcher also gathered that, whether Zimbabwe ratifies the Bali initiative or not, the country will be affected equally by international economic shocks that will emanate from the implementation of the Bali package due to rapid globalisation. As a result the study also provides for relevant recommendations that could contribute to the economic development of Zimbabwe as well as minimising the vulnerability of Zimbabwean economy from the effects of the package particularly TF. It is believed that this will revive the country’s position as an active player in international trade